Copper rose the most in five weeks after central banks from the U.S. to China moved to ease strains in financial markets and spur growth.
The Federal Reserve and five other central banks agreed to cut the cost of emergency funding for banks in Europe as part of a global effort to stem the region’s debt crisis. Separately, China cut the amount of cash that lenders must set aside as reserves for the first time since 2008.
The coordinated efforts among central banks “along with the Chinese reserve cut are the obvious short-term drivers,” James Dailey, who manages $215 million at TEAM Financial Management LLC in Harrisburg, Pennsylvania, said in an e-mail.
Copper futures for March delivery jumped 6.7 percent to $3.6165 a pound at 10:53 a.m. on the Comex in New York. A close at that level would mark the biggest gain for a most-active contract since Oct. 24.
The Standard & Poor’s GSCI index of 24 raw materials advanced as much as 1.7 percent today, with all commodities rising except natural gas.
Copper also increased after a private report signaled U.S. companies added more workers than anticipated in November. The U.S. is the world’s largest consumer after China.
On the London Metal Exchange, copper for delivery in three months rose 6.3 percent to $7,960 a metric ton ($3.61 a pound).
Aluminum, nickel, tin, lead and zinc also climbed in London.
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